Jaiprakash Associates may go in for raising Rs 2,500-3,000 crore through sale of the treasury shares, which it will receive for merging four of its subsidiaries with itself, as indicated by an investment banker following the deal.
The cement and construction biggie is going to receive treasury shares to the tune of 14.5% of the equity capital of merged company once it unite Jaypee Hotels, Jaypee Cement, Gujarat Anjan Cement and Jaiprakash Enterprises with itself and it is expected to take place in next few weeks.
The funds raised will be utilized to fund its Rs 2,000 crore and Rs 400 crore expansion plans for cement and construction segment, respectively, apart from repaying some of its high-cost obligations.
The company had repurchased foreign currency convertible bonds (FCCBs) worth $36 million in the month of March 2009. Meanwhile, the company has denied any such move.